UBS Asset Management’s Energy Storage Investment Fund I has successfully secured $315.7 million in financing for four battery energy storage system (BESS) projects in Texas, a move set to strengthen the state’s energy storage capabilities.
The financing round was co-led by First Citizens Bank and Deutsche Bank, with additional support from Société Générale (SocGen), Siemens, BankUnited, Mitsubishi HC Capital, and Bayern LB.
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The four projects, collectively amounting to 730 megawatts (MW) and 1,049 megawatt-hours (MWh) of energy storage capacity, are poised to commence commercial operations later this year.
This substantial addition to the grid is expected to enhance grid stability and reliability while optimizing the integration of renewable power sources.
“We see expanding opportunities for battery storage systems, such as these four projects in Texas, to support the reliability and cost-effectiveness of clean energy sources,” said Ken-Ichi Hino, Co-head of the Energy Storage investment strategy at UBS Asset Management.
He added, “We greatly appreciated the industry knowledge and expertise of First Citizens Energy Finance in helping arrange this financing.”
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Battery energy storage systems are increasingly recognized as crucial for maintaining grid stability, particularly as the share of intermittent renewable energy sources grows.
By providing a means to store excess energy generated during peak production times, these systems can help balance supply and demand, ultimately leading to a more reliable and efficient energy grid.
UBS Asset Management’s commitment to expanding its energy storage portfolio underscores its strategy to support the transition to a cleaner energy future.
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The projects funded through this financing round will be key in advancing Texas’s energy infrastructure, further reinforcing the state’s position as a leader in energy innovation.
As these battery storage systems become operational, they will contribute to a more resilient energy grid and facilitate greater integration of renewable energy, aligning with broader goals of reducing carbon emissions and enhancing energy sustainability.